The contrasting FMCG (Fast-Moving Consumer Goods) habits of Latam’s Generation Z and Baby Boomers reflect the shifting dynamics of consumption in the region. Here's a breakdown of the key points from the article:
1. Economic Context: Favorable economic conditions, including significant GDP growth, decreased inflation, and reduced unemployment rates, have contributed to a thriving mass consumer goods market in Latin America.
2. Demographic Changes: The region is experiencing a demographic shift, with an aging population and an increase in the number of households. By 2025, the over-50 age group will outnumber children, and by 2050, they will constitute almost 40% of the Latin American population.
3. Impact on FMCG: The growing number of households is significantly impacting FMCG spending. Each additional person in a household contributes an average of US$300 annually to the spending basket, while each new household generates an average of US$1,557.
4. Baby Boomers: Representing almost a quarter of all households with up to two people, Baby Boomers (aged over 65) exhibit high purchase frequency with smaller baskets. They prioritize quality in food and beverage categories, particularly dairy and drinks.
5. Generation Z and Millennials: Younger Millennials and Generation Z (under the age of 34) are characterized by smaller families, high work participation, and a preference for buying in bulk through local channels. They prioritize essential items, especially in hygiene categories, and utilize e-commerce for purchases.
6. Economic Development Impact: Despite demographic similarities with European economies, Latin America's lower GDP per capita affects the purchasing power of consumers, particularly young adults.
7. FMCG Growth Drivers: While Baby Boomers and Generation Z are important segments for future consumption trends, the main drivers of FMCG growth today are the intermediate age groups, particularly those aged 35 to 64.
8. Implications for Brands: Understanding the distinct needs, lifestyles, and financial capabilities of Baby Boomers and Generation Z is crucial for brands seeking to establish meaningful connections and unlock growth potential in the Latin American market.
In summary, the FMCG habits of Generation Z and Baby Boomers in Latin America reflect a complex interplay of demographic shifts, economic factors, and consumer preferences, highlighting the importance of adaptability and targeted strategies for brands operating in the region.
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